Staking involves locking up cryptocurrency to support a blockchain network, with two roles: validators (who create blocks) and nominators (who delegate coins to validators).
On the Polkadot network, nominators delegate DOT to validators, and both receive rewards for their participation.
To start staking DOT, you need at least 1 DOT, a wallet like Nova Wallet, and a minimum of 2 DOT to cover potential gas fees.
You can choose between direct staking, which requires a larger amount of DOT, or pool staking, which is more accessible and allows you to join a nomination pool.
Once staked, you can start earning rewards, and it's important to regularly claim them from your wallet.
Staking is a key feature in blockchain networks that use the Proof-of-Stake (PoS) consensus mechanism, such as Polkadot. It involves locking up a certain amount of cryptocurrency (like $DOT) to support the network’s operations, such as validating transactions and creating new blocks, in exchange for rewards. Staking helps ensure that the network runs smoothly and securely without requiring the energy-intensive process used in Proof-of-Work (PoW) networks like Bitcoin. It also helps protect the network from attacks by penalizing anyone who acts maliciously or fails to properly follow the blockchain’s rules.
There are two main roles in the staking process: validators and delegators (called nominators in the Polkadot ecosystem). Validators are responsible for running the nodes that process transactions, create new blocks, and keep the network secure. They ensure that only valid transactions are added to the blockchain. Running a validator node requires technical expertise, computing resources, and a substantial amount of staked crypto.
Nominators, on the other hand, don’t need to run a node themselves. Instead, they participate in the staking process by nominating which validators they trust and allocating their DOT to those validators. Being a nominator lets you earn rewards for participating in the network even with less technical technical knowledge and fewer resources than a validator.
Both validators and nominators are rewarded for their contributions. Validators earn rewards for their role in maintaining the blockchain, and they share these rewards with their nominators proportionally to the amount each has staked.
Polkadot’s PoS system makes staking accessible to users with varying levels of resources. Validators need to meet a high threshold of DOT to run a node, but nominators can participate with as little as 1 DOT in a nomination pool. Pool staking allows smaller holders to group their funds together to meet staking requirements and share in the rewards.
Let’s learn how to stake $DOT and earn some rewards!
Step 1
Acquire some Polkadot ($DOT).
The easiest way to do this is by buying it in a centralized exchange. Staking, in general, requires a certain amount of cryptocurrency to be eligible for staking, and there are also gas fees to be paid. You need a minimum of 1 DOT to join a nomination pool but have at least 2 DOT to account for possible gas fees.
Step 2
Set up a Polkadot wallet.
There are many different types of wallets but for the purposes of this guide, we’ll use Nova Wallet. You can download it from Google Play or the App Store.
You can check our guide on how to set up a Nova Wallet here.
Download the wallet and make sure to secure your seed phrase.
Step 3
Fund your wallet with DOT.
Send the DOT you bought from the centralized exchange to your new wallet.
On the Assets page of your Nova Wallet, tap “Receive.” Select “Dot”. Then, select "Copy address".
You can view these exact steps in detail in our short guide of “How to Receive Crypto from Another Wallet” using Nova Wallet right here.
Go to whichever centralized exchange you have DOT on. Go to “Wallet” then click “Withdraw” and select “DOT”.
Then, paste the previously copied address on the address bar of the centralized exchange and send the appropriate amount of DOT coins.
Your Nova Wallet should now be funded.
Choosing amount of DOT to withdraw from a centralized exchange
Step 4
Navigate to the Staking tab on your Nova Wallet.
Open your now funded Nova Wallet and navigate to the Staking tab found on the bottom of your screen.
You will see a selection of different networks. Click “DOT”.
Choosing “DOT” from the selection of Staking Networks
Step 5
Enter the amount of DOT you wish to stake.
Some staking tips will appear. Review them then click “Start Staking”.
Enter the amount you wish to stake.
Depending on the amount you input, you will be recommended either direct staking or pool staking.
Inputting amount of DOT to stake
Step 6
Choose which type of staking you wish to do.
Choose between either Direct Staking or Pool Staking by clicking “Recommended”.
The features of both types of staking will appear on the screen. Choose which you prefer.
As of Feb 1, 2024, you would require 621.93 DOT to participate in Direct staking. This amount changes with time. If your wallet does not have the required amount, you will have to do “Pool Staking”.
The rest of this guide will focus on “Pool Staking”.
For Pool staking, you can also choose your nomination pool. By default, the nomination pool managed by the Nova Wallet team is chosen. You can click it to bring up a pool list and change your pool.
Features of Direct Staking and Pool Staking.
Tapping the chosen pool brings up the pool list
List of Nomination Pools you can join
Step 7
Confirm your transaction.
Once you finalize your nomination pool, click “Continue”.
This will bring up your transaction details. Review them and click “Confirm”.
You are now staking your DOT in a nomination pool and can earn rewards. Remember to collect them every so often!
Clicking “Continue” to move on to confirming transaction
Clicking Confirm to finalize transaction and stake DOT
While staking may seem confusing at first, it is an effective way to earn interest on coins that you already plan on holding long-term. Keep practicing and you’ll get the hang of it in no time!
